John Zasada, Compliance Consulting Director, Financial Institutions Group

On April 7, 2021, the Consumer Financial Protection Bureau (CFPB) proposed delaying the effective date of two recent Fair Debt Collection Practices Act (FDCPA) rules set to take effect on Nov. 30, 2021.

  1. Fair Debt Collection: Addresses communications in connection with debt collection and prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection. It also addresses the use of newer communication technologies in debt collection and establishes record retention requirements.
  2. Debt Collection Disclosures: Addresses debt collection disclosures and the information debt collectors must provide consumers at the outset of collections communications. It also prohibits debt collectors from bringing or threatening to bring a legal action against a consumer to collect a time-barred debt, as well as furnishing information about a debt to a consumer reporting agency before the debt collector takes certain actions to contact the consumer about the debt.

The proposed rule would extend both of these to have effective dates to Jan. 29, 2022. For more information these potential changes, contact Doeren Mayhew’s regulatory compliance specialists.